At the end of July, a new project appeared on the crypto market, attracting the interest of the entire crypto community. The Worldcoin project is another ambitious child of Sam Altman, the founder of OpenAI and ChatGPT. Is it a new revolutionary solution in the world of cryptocurrencies, or maybe it all is just big speculation? Let’s try to figure it out in this new material.
Who is Sam Altman?
Sam Altman is a young American startup, investor and IT specialist. He received a worldwide fame and popularity due to the founding of OpenAI, an AI research and deployment company.
The most sensational development of OpenAI was the ChatGPT neural network. This is an algorithm based on the capabilities of artificial intelligence that is able to write texts. Moreover, ChatGPT can translate and adapt texts, it is familiar with logic and semantic accents, generalizations, etc. Basically, it is a full-fledged AI product, which today is already capable of writing full-fledged articles without human intervention. SimpleSwap even made an experiment once and let ChatGPT take over its Twitter account.
Sam Altman decided not to stop in his developments, despite the fact that ChatGPT gave him worldwide fame. The ambitious startup decided to conquer the Cryptocurrency World and in 2019 began to develop his own crypto – Worldcoin (WLD).
What is Worldcoin?
The main goal of the Worldcoin project was to create a cryptocurrency that can be distributed among the maximum number of users. In the ideal setup, every person on Earth would own and use this new crypto. In theory, this approach increases the efficiency of the coin, makes it competitive and helps to strengthen the decentralization concept. But let’s see what really happens.
The public launch of the project took place on July 24, 2023. Simultaneously with the launch, the listing of the native WLD token took place on the major exchanges like Binance. According to the Financial Times, the new technology will initially be available in 35 major cities across 20 countries around the world. Worldcoin will not be available In the United States due to crypto regulatory issues.
Why does it need your eyes?
In the context of the expanding influence of artificial intelligence, personal identification has become a big issue. With each step forward in AI technology, it is becoming increasingly difficult to determine whether the user is a real person or some digital being.
To overcome this difficulty, the Worldcoin team developed an innovative concept called Proof of Personhood and implemented a verification system based on biometric data. Because of such an approach, Worldcoin turns from a regular payment token into a sophisticated platform that combines several technical modules.
The identification technology is called World ID. This is a digital passport built on the blockchain technology. Users can get it by scanning their eyes with a special device – the Orb. It is reported that sites will be provided for this identification event in different cities.
After passing the identification procedure, the user will receive his Proof of Personhood. After its public launch, Worldcoin has around 300 Orbs in 20 countries, but the company plans to roll out 1,500 Orbs this year to cover the increasing demand for verification.
How to get WLD tokens
To participate in the drop of WLD tokens, the user has to:
- Download and install the World App application on your smartphone. The application functions as an electronic wallet for tokens and fiat.
- Get a specially generated private key from the World App. In fact, this is an encrypted wallet address that can be shared without disclosing personal data.
- In the nearest Orbs, users need to go through identification and get Proof of Personhood. Using the QR code, you will need to transfer it to the World App and complete the registration.
- Upon completion of World ID verification, the user will receive the starting amount of WLD tokens to his account which value is equal to $50.
What is the problem here?
Despite the theoretical security of the World ID concept, there are vulnerabilities within the technical implementation of Worldcoin that could lead to operational issues on the platform. These weak points include:
- Centralization. Unique scan verification takes place on the Worldcoin server, and this centralization extends to the operations involving Orbs. That means there are risks of system failures while verifying new users.
- Operators. Orbs operators function as intermediaries and are not Worldcoin employees, which means the company is not liable for their actions. Operators, for instance, might conceal project details to attract new users, creating potential problems.
- Data leak. In May 2023, hackers managed to access the accounts of Orb operators. Although user data remains secure as operators don’t have access to it, this compromises trust in the system themselves.
- Lack of security measures. After passing verification, users can give their wallet to anyone – the platform does not provide any security measures. Accounts aren't necessarily tied to specific devices, which facilitated the emergence of illicit Worldcoin account markets in China.
In general, the project intends to address centralization issues by granting more authority to holders of the native token in the future. Nevertheless, Worldcoin's biggest vulnerability remains its difficult verification system, which requires highly skilled maintenance.
Vitalik Buterin, creator of Ethereum (ETH), has already expressed concerns regarding the development of biometric verification and mentioned Worldcoin. He believes that the rapid adoption of such technology without a deep research of potential attack vectors and the possible need for centralization could badly affect platform performance and security.
Conclusion
Worldcoin is a major and audacious venture, affecting the identity verification problem within the digital realm. The project's team has created a secure platform based on blockchain, physical devices, and ZKP (Zero-Knowledge Proofs). It preserves user confidentiality while confirming their uniqueness through biometric data. The project has been launched in 20+ countries.
However, its operating in the US, UK, and EU remains uncertain. Worldcoin has its risks, as well as its advantages, like any other projects in Crypto World. Let us know what you think about this platform in the comments below.
If you want to learn more interesting facts about crypto then check out our blog! You might like our articles “What is Worldcoin (WLD) and What to Expect” and “Sam Altman’s Worldcoin Launched WLD Token”.
